**Federal Reserve's Policy Direction for 2025, Tonight's US PPI Data is Key**

What the market is paying attention to is the Producer Price Index(PPI) to be announced tonight at 21:30. Tomorrow, Wednesday, the US Consumer Price Index(CPI) statistics will follow, and investors are desperately trying to accurately interpret the inflation trend. These two indicators are expected to serve as important signals for the Fed's future interest rate policy developments.

**Weak Inflation Data Could Lead to Dollar Weakness and Gold Price Rise**

KCM Trade's chief market analyst Waterl mentioned the scenario of poor economic data this week. If the Producer Price Index and Consumer Price Index come in weaker than expected, the dollar is likely to face downward pressure. Historically, during dollar weakness phases, gold tends to perform strongly. In fact, during periods when inflation concerns ease, gold has strengthened as a safe-haven asset, recording price increases.

**Market is Betting Heavily on Fed Easing, but Reality is Complex**

The rapidly spreading outlook across the trading community is that "the Fed will not pursue aggressive monetary easing in 2025." The reason lies in the economic fundamentals. With a solid employment market and robust economic growth, policymakers need additional evidence of inflation improvement to continue lowering interest rates. However, at this point, such evidence is unclear. This suggests that the Fed is likely to maintain a cautious stance.